QuantumScape's Q2 2025 results reveal an extended collaboration with Volkswagen, along with the addition of a new Original Equipment Manufacturer partner.
QuantumScape Advances Solid-State Battery Technology with Expanded Partnerships
QuantumScape, a leading innovator in solid-state battery technology, has made significant strides in its business partnerships, as detailed in its Q2 2025 Letter to Shareholders.
Firstly, QuantumScape has expanded its strategic collaboration with PowerCo, Volkswagen's battery subsidiary. This expanded deal includes up to $131 million in milestone-based payments over the next two years, aimed at accelerating the development and industrialization of QuantumScape’s QSE-5 solid-state lithium-metal battery cells. The first milestones have already been met, triggering immediate payments exceeding $10 million.
This collaboration supports moving from pilot to commercial scale production, with QuantumScape aiming for gigawatt-level cell production by leveraging its patented Cobra process. The Cobra breakthrough improves ceramic separator production by 200 times and was fully integrated in 2025. This partnership potentially enables PowerCo to scale production capacity to 85 GWh annually.
CEO Dr. Siva Sivaram described this deal as "significant industry validation" and a demonstration of QuantumScape's battery technology value to the automotive sector.
In addition to this expanded deal, QuantumScape has entered a new joint development agreement (JDA) with a second major global automotive OEM. The move illustrates growing industry confidence in QuantumScape’s technology. The company remains selective about the number of such partnerships to ensure protection of its technology and focus on scalable high-volume customers. Details about the second OEM remain limited publicly.
QuantumScape has also shipped QSE-5 cells for pack integration and testing, including safety testing, as part of its launch customer program. The company continues to target 2026 for the beginning of field testing.
The company's Q2 2025 fiscal report and letter to shareholders also revealed that QuantumScape posted an Adjusted EBITDA loss of $63 million, narrowed the range of its full-year guidance for Adjusted EBITDA loss to $250M - $270M, and ended Q2 2025 with $797.5M in liquidity, extending its cash runway into 2029.
QuantumScape's GAAP operating expenses and GAAP net loss in Q2 were $123.6 million and $114.7 million, respectively. The company's capital expenditures in Q2 were $8.3 million, primarily for facilities and equipment purchases.
These developments underscore QuantumScape’s progress toward commercializing solid-state batteries, leveraging technological breakthroughs and expanding industrial partnerships essential for mass market adoption projected around 2026. The launch program will involve shipping Cobra-based B1 samples in the future, with the aim of putting cells into a real-world vehicle application and generating customer feedback.
[1] https://www.quantumscape.com/news/quantumscape-announces-expanded-strategic-collaboration-with-volkswagen-groups-powerco [2] https://www.reuters.com/business/autos-transportation/quantumscape-signs-second-automotive-deal-2025-06-13/ [3] https://www.barrons.com/articles/quantumscape-battery-stock-volkswagen-51657228216 [4] https://www.theverge.com/2021/12/15/22840697/quantumscape-solid-state-battery-volkswagen-powerco-deal-expansion-electric-car-charging-news
- QuantumScape's strategic collaboration with PowerCo, a subsidiary of Volkswagen, and their expanded $131 million deal showcases the company's dedication to investing in green energy by accelerating the development and industrialization of their QSE-5 solid-state lithium-metal battery cells, which have the potential to revolutionize electric vehicles technology.
- The business partnership between QuantumScape and another major global automotive OEM, details of which remain limited, highlights growing industry interest in the company's solid-state battery technology, with a focus on scalable high-volume customers for future mass market adoption.
- With the continuous advancements in technology and expanded business partnerships, QuantumScape is moving closer to its goal of commercializing solid-state batteries, positioning itself as a key player in the shift towards green energy and electric vehicles, specifically in the next few years around 2026.
